Gas market outlook in China remains ‘bullish’
China’s gas demand is expected to grow up to 512bcm by 2031.
The outlook for China’s gas market remains bullish as China sets ambitious targets to increase the share of gas in its power mix, Fitch Solutions reported.
In a report, Fitch expected strong support for the market’s long-term demand growth as state-owned companies expand gas networks and gas storage infrastructures.
This is also supported by the government’s policy to switch from coal to gas in power sector.
In this light, China’s gas market is expected to see a demand growth of up to 512 billion cubic metre by 2031.
“More gas will be needed to support fuel switching policy,” the report read in part. “China will continue to face insufficient supply of natural gas to keep pace with demand growth, but the solution to address this will be to ramp up LNG imports as the significant upside risks to domestic gas production remains uncertain.”